An inferior good is
A)a good whose demand increases when income rises.
B)a good whose demand decreases when income rises.
C)an item that is only bought by rich people.
D)an item that is purchased by very few people.

Question

Quizplus · Accepted Answer

An inferior good is a good whose demand decreases when income rises. This is because as consumers' incomes increase, their preferences shift to higher quality or more expensive goods, and they can afford to buy these alternatives. Examples of inferior goods include low-quality or generic brands, public transportation, and fast food.

An Inferior Good Is